Limited time offer: Sign up today and get up to 1 year managed free. See details

Charitable Giving: A better way to give, coming November 28. Learn more

Financial Advisor Start-Ups Offering Low-Cost Guidance Online

Article by Dinah Wisenberg Brin

Betterment, based in New York City, is one of several relatively new online services offering investors automated financial advice and money management, often at a discount to traditional financial planners. These services often target the young and tech-savvy, catching them just as they are getting serious about investing.

According to founder and CEO Jonathan Stein, the typical Betterment customer is a professional who’s had a change, such as a marriage or major promotion, that makes money more significant. Some firms offer significant savings. While traditional financial advisors may charge a management fee of 1 percent to 2 percent, Betterment charges all-inclusive fees ranging from 0.35 percent for accounts with low balances to 0.15 percent for those with $100,000 or more, Stein said.

Read the Original Article

This article originally published February 12th, 2013 on CNBC.